ESG Products and Services

Social Bonds

In 2024, Otbasy Bank JSC issued its first social bonds on the Kazakhstan Stock Exchange (KASE) in the total amount of KZT 209.9 billion (in nominal value: KZT 170.5 billion at an annual yield of 14.25 %, and KZT 39.3 billion at an annual yield of 15.25 %) for a wide range of investors as part of funding the Nauryz program. The program was developed under the directive of Kassym-Jomart Tokayev, the President of the Republic of Kazakhstan, to support the country’s social policy. At the time of placement, the bond yields corresponded to the base rate set by the National Bank of the Republic of Kazakhstan. The bonds were issued at market rates of 14-15 %. Additionally, KZT 6.2 billion from the reserve of the Government of the Republic of Kazakhstan was allocated to subsidize the interest rate down to 7 % for loans to socially vulnerable groups. The bondholders included second-tier banks and brokerage firms (42 %), insurance companies (34 %), and institutional investors (24 %).

Report on the Placement of Bonds under the Nauryz Program

No.	Placement Date	Ticker / ISIN	Coupon Rate (annual %)	Number of Bonds Placed	Amount Raised (KZT million)
1	24.07.2024	JSBNb2 / KZ2C00011658	14.25 %	100,000,000	100,000.00
1	24.07.2024	JSBNb3 / KZ2C00011740	14.25 %	70,500,000	70,500.00
2	13.12.2024	JSBNb4 / KZ2C00011757	15.25 %	29,300,000	29,300.00
3	27.12.2024	JSBNb4 / KZ2C00011757	15.25 %	10,049,631	10,109.23
Total in 2024:				209,849,631	209,909.23

The Bank’s social bonds provide investors with the following advantages:

Partnership with a reliable and stable financial institution like Otbasy Bank JSC, which has a sovereign-level credit rating, and participation in a national-level social initiative under the Nauryz program aimed at improving the standard of living.
Coupon income is exempt from taxation because Otbasy Bank is included in the list of financial agencies of the Republic of Kazakhstan and its bonds are listed on the KASE official list.
The Bank’s bonds are included in the repo basket of bonds issued by state-participation entities and are expected to have a market maker.
Bond maturity is 5 years.
Coupon payments are made twice a year.

Participants of the Nauryz program included citizens who did not own housing or conduct real estate transactions within the past 5 years. Among them were employees of budget-funded institutions, military personnel, and staff of specialized government agencies, as well as members of socially vulnerable groups: people on municipal housing waiting lists, persons with disabilities (Groups 1 and 2), orphans, large families, families raising children with disabilities, and single-parent families.

Below is a breakdown of the funds utilized, disaggregated by region/single-industry towns/regional centers/districts, as well as by age group (youth, etc.), gender (male/female), and categories of socially vulnerable groups.

Loans Issued by Region and Gender

Region	Total		Women				Men
Region	Number	Loan Amount (KZT ‘000)	Number	Share (%)	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Share (%)	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)
Almaty	1,502	46,207,491	801	53 %	23,492,446	29,329	701	47 %	22,715,045	32,404
Astana	1,593	43,165,746	796	50 %	20,020,411	25,151	797	50 %	23,145,335	29,041
Shymkent	466	11,950,607	229	49 %	5,661,272	24,722	237	51 %	6,289,335	26,537
Single-Industry Towns	138	2,507,115	60	43 %	970,403	16,173	78	57 %	1,536,712	19,701
Abay	3	35,200	1	33 %	11,200	11,200	2	67 %	24,000	12,000
Aksai	30	578,936	17	57 %	313,075	18,416	13	43 %	265,861	20,451
Aksu	5	76,757	4	80 %	47,900	11,975	1	20 %	28,857	28,857
Arkalyk	1	22,000		0 %			1	100 %	22,000	22,000
Balkhash	15	306,960	7	47 %	115,974	16,568	8	53 %	190,986	23,873
Zhanaozen	21	390,233	13	62 %	234,091	18,007	8	38 %	156,142	19,518
Kentau	1	30,000		0 %			1	100 %	30,000	30,000
Rudny	11	141,000	6	55 %	72,746	12,124	5	45 %	68,254	13,651
Satpayev	15	318,850	5	33 %	87,500	17,500	10	67 %	231,350	23,135
Stepnogorsk	1	10,800		0 %			1	100 %	10,800	10,800
Tekeli	1	18,400		0 %			1	100 %	18,400	18,400
Temirtau	7	105,036	1	14 %	8,400	8,400	6	86 %	96,636	16,106
Khromtau	8	178,182	1	13 %	21,870	21,870	7	88 %	156,312	22,330
Shakhtinsk	3	51,302	1	33 %	14,848	14,848	2	67 %	36,454	18,227
Ekibastuz	16	243,460	4	25 %	42,800	10,700	12	75 %	200,660	16,722
Regional Centers	1,901	44,140,780	733	39 %	15,640,587	21,338	1,168	61 %	28,500,193	24,401
Aktau	79	1,732,419	32	41 %	594,802	18,588	47	59 %	1,137,617	24,205
Aktobe	328	7,238,286	142	43 %	2,945,755	20,745	186	57 %	4,292,531	23,078
Atyrau	91	2,233,565	40	44 %	949,594	23,740	51	56 %	1,283,971	25,176
Zhezkazgan	3	84,969	1	33 %	24,969	24,969	2	67 %	60,000	30,000
Karaganda	194	5,015,621	63	32 %	1,488,364	23,625	131	68 %	3,527,257	26,926
Kokshetau	113	2,455,758	32	28 %	683,336	21,354	81	72 %	1,772,422	21,882
Kostanay	273	5,868,666	130	48 %	2,560,930	19,699	143	52 %	3,307,736	23,131
Kyzylorda	17	413,928	6	35 %	156,000	26,000	11	65 %	257,928	23,448
Konaev	18	455,363	6	33 %	133,226	22,204	12	67 %	322,137	26,845
Pavlodar	23	677,177	6	26 %	173,288	28,881	17	74 %	503,889	29,641
Petropavlovsk	74	1,723,273	18	24 %	345,190	19,177	56	76 %	1,378,083	24,609
Semey	130	3,172,512	38	29 %	839,455	22,091	92	71 %	2,333,057	25,359
Taldykorgan	31	693,224	14	45 %	288,119	20,580	17	55 %	405,105	23,830
Taraz	123	2,793,222	45	37 %	925,992	20,578	78	63 %	1,867,230	23,939
Turkestan	29	656,494	11	38 %	254,398	23,127	18	62 %	402,097	22,339
Uralsk	233	5,279,065	114	49 %	2,414,138	21,177	119	51 %	2,864,927	24,075
Ust-Kamenogorsk	142	3,647,239	35	25 %	863,032	24,658	107	75 %	2,784,207	26,021
Districts and Villages	1,185	28,725,176	624	53 %	14,449,299	23,156	561	47 %	14,275,877	25,447
Total	6,785	176,696,914	3,243	48 %	80,234,417	24,741	3,542	52 %	96,462,497	27,234

Loans Issued by Age Group

Region	Under 35			Over 35
Region	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)
Almaty	746	23,227,889	31,137	756	22,979,601	30,396
Astana	881	24,065,800	27,316	712	19,099,946	26,826
Shymkent	253	6,480,791	25,616	213	5,469,816	25,680
Single-Industry Towns	73	1,430,113	19,591	65	1,077,002	16,569
Abay				3	35,200	11,733
Aksai	17	340,473	20,028	13	238,463	18,343
Aksu				5	76,757	15,351
Arkalyk	1	22,000	22,000
Balkhash	9	183,789	20,421	6	123,171	20,529
Zhanaozen	14	257,033	18,360	7	133,200	19,029
Kentau				1	30,000	30,000
Rudny	1	16,500	16,500	10	124,500	12,450
Satpayev	13	290,350	22,335	2	28,500	14,250
Stepnogorsk	1	10,800	10,800
Tekeli	1	18,400	18,400
Temirtau	2	28,896	14,448	5	76,140	15,228
Khromtau	6	140,312	23,385	2	37,870	18,935
Shakhtinsk	1	20,000	20,000	2	31,302	15,651
Ekibastuz	7	101,560	14,509	9	141,900	15,767
Regional Centers	1,014	23,768,317	23,440	887	20,372,462	22,968
Aktau	52	1,153,795	22,188	27	578,624	21,431
Aktobe	183	4,056,181	22,165	145	3,182,105	21,946
Atyrau	55	1,373,384	24,971	36	860,181	23,894
Zhezkazgan	2	60,000	30,000	1	24,969	24,969
Karaganda	97	2,574,190	26,538	97	2,441,431	25,169
Kokshetau	51	1,120,964	21,980	62	1,334,794	21,529
Kostanay	141	3,141,520	22,280	132	2,727,146	20,660
Kyzylorda	16	399,928	24,995	1	14,000	14,000
Konaev	8	215,671	26,959	10	239,691	23,969
Pavlodar	13	384,589	29,584	10	292,588	29,259
Petropavlovsk	45	1,037,698	23,060	29	685,575	23,641
Semey	59	1,411,075	23,917	71	1,761,437	24,809
Taldykorgan	12	285,897	23,825	19	407,327	21,438
Taraz	66	1,510,249	22,883	57	1,282,973	22,508
Turkestan	18	397,675	22,093	11	258,819	23,529
Uralsk	115	2,636,617	22,927	118	2,642,448	22,394
Ust-Kamenogorsk	81	2,008,886	24,801	61	1,638,354	26,858
Districts and Villages	518	12,797,960	24,706	667	15,927,216	23,879
Total	3,485	91,770,870	26,333	3,300	84,926,044	25,735

Loans Issued to Socially Vulnerable Groups and Local Executive Bodies Waitlist Applicants

Region	Single Parents			Large Families			Families with Children with Disabilities_2			WWII Veterans Equivalent			Disabled (Group 1 & 2)			Returnees			Total Number	Total Loan Amount (KZT ‘000)
Region	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Total Number	Total Loan Amount (KZT ‘000)
Almaty	189	5,556,276	29,398	141	4,444,278	31,520	18	534,104	29,672				11	326,006	29,637				691	21,321,406
Astana	145	3,493,603	24,094	84	2,499,168	29,752	23	673,855	29,298	1	21,546	21,546	10	232,616	23,262				536	14,344,277
Shymkent	39	900,236	23,083	56	1,486,711	26,548	3	73,673	24,558				2	49,987	24,993				206	5,325,170
Single-Industry Towns	22	356,032	16,183	3	70,850	23,617	1	22,000	22,000				1	10,000	10,000	1	16,500	16,500	53	929,403
Aksai	8	149,112	18,639																15	288,962
Aksu	1	16,000	16,000																1	16,000
Arkalyk							1	22,000	22,000										1	22,000
Balkhash	4	68,000	17,000																5	81,000
Zhanaozen	4	62,200	15,550	3	70,850	23,617							1	10,000	10,000				12	213,291
Rudny	1	6,350	6,350													1	16,500	16,500	5	64,050
Satpayev	2	25,000	12,500																6	112,000
Temirtau																			1	15,382
Khromtau	1	21,870	21,870																1	21,870
Shakhtinsk																			2	34,848
Ekibastuz	1	7,500	7,500																4	60,000
Regional Centers	166	3,317,490	19,985	88	2,155,582	24,495	21	465,326	22,158	2	48,037	24,019	13	252,180	19,398				826	19,158,134
Aktau	10	168,704	16,870	7	133,254	19,036	8	155,852	19,482										39	783,625
Aktobe	22	456,154	20,734	21	492,358	23,446	1	30,000	30,000	1	18,500	18,500	4	69,376	17,344				117	2,609,465
Atyrau	9	202,543	22,505	6	162,240	27,040	2	42,200	21,100										48	1,152,488
Zhezkazgan				1	30,000	30,000													3	84,969
Karaganda	13	302,540	23,272	7	200,220	28,603	1	21,500	21,500	1	29,537	29,537	4	89,196	22,299				84	2,156,573
Kokshetau	13	251,239	19,326	1	23,200	23,200							1	19,570	19,570				45	986,533
Kostanay	32	585,112	18,285	4	87,157	21,789													113	2,415,986
Kyzylorda	1	23,400	23,400				1	23,000	23,000										5	121,400
Konaev	1	15,290	15,290										1	17,861	17,861				4	86,878
Pavlodar	1	30,000	30,000	1	30,000	30,000													13	387,588
Petropavlovsk	7	131,484	18,783																32	746,759
Semey	8	156,541	19,568	6	161,145	26,857	1	30,000	30,000										49	1,158,707
Taldykorgan	5	103,085	20,617	1	19,152	19,152													15	360,937
Taraz	6	128,060	21,343	14	325,205	23,229	1	13,608	13,608										59	1,375,240
Turkestan	2	45,615	22,808	1	29,600	29,600	1	9,400	9,400				1	19,625	19,625				19	419,412
Uralsk	29	553,425	19,084	16	409,991	25,624	1	30,000	30,000				2	36,554	18,277				134	3,101,972
Ust-Kamenogorsk	7	164,298	23,471	2	52,060	26,030	4	109,766	27,442										47	1,209,604
Districts and Villages	152	3,364,017	22,132	104	2,637,250	25,358	15	406,988	27,133				6	164,440	27,407				528	12,784,240
Total	713	16,987,654	23,826	476	13,293,840	27,928	81	2,175,945	26,864	3	69,583	23,194	43	1,035,228	24,075	1	16,500	16,500	2,840	73,862,630

Region	Public Servants			Retirees			Undefined Category			Total Number	Total Loan Amount (KZT ‘000)
Region	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Number	Loan Amount (KZT ‘000)	Average Loan Amount (KZT ‘000)	Total Number	Total Loan Amount (KZT ‘000)
Almaty	331	10,436,999	31,532	1	23,743	23,743				691	21,321,406
Astana	272	7,401,523	27,211	1	21,965	21,965				536	14,344,277
Shymkent	106	2,814,564	26,552							206	5,325,170
Single-Industry Towns	25	454,021	18,161							53	929,403
Aksai	7	139,850	19,979							15	288,962
Aksu										1	16,000
Arkalyk										1	22,000
Balkhash	1	13,000	13,000							5	81,000
Zhanaozen	4	70,241	17,560							12	213,291
Rudny	3	41,200	13,733							5	64,050
Satpayev	4	87,000	21,750							6	112,000
Temirtau	1	15,382	15,382							1	15,382
Khromtau										1	21,870
Shakhtinsk	2	34,848	17,424							2	34,848
Ekibastuz	3	52,500	17,500							4	60,000
Regional Centers	501	12,035,607	24,023	8	154,402	19,300	27	729,510	27,019	826	19,158,134
Aktau	13	303,016	23,309	1	22,800	22,800				39	783,625
Aktobe	68	1,543,077	22,692							117	2,609,465
Atyrau	31	745,505	24,049							48	1,152,488
Zhezkazgan	1	30,000	30,000	1	24,969	24,969				3	84,969
Karaganda	29	739,070	25,485	2	45,000	22,500	27	729,510	27,019	84	2,156,573
Kokshetau	30	692,524	23,084							45	986,533
Kostanay	73	1,682,085	23,042	4	61,633	15,408				113	2,415,986
Kyzylorda	3	75,000	25,000							5	121,400
Konaev	2	53,727	26,864							4	86,878
Pavlodar	11	327,588	29,781							13	387,588
Petropavlovsk	25	615,275	24,611							32	746,759
Semey	34	811,021	23,854							49	1,158,707
Taldykorgan	9	238,700	26,522							15	360,937
Taraz	38	908,367	23,904							59	1,375,240
Turkestan	14	315,172	22,512							19	419,412
Uralsk	86	2,072,003	24,093							134	3,101,972
Ust-Kamenogorsk	34	883,479	25,985							47	1,209,604
Districts and Villages	250	6,183,546	24,734	1	28,000	28,000				528	12,784,240
Total	1,485	39,326,260	26,482	11	228,110	20,737	27	729,510	27,019	2,840	73,862,630

According to mortgage market data analysis, average interest rates for mortgage loans from second-tier banks range from 14 % to 22.5 % annually. Under the Nauryz program, the final loan interest rate for borrowers was 9 % (EAR from 9.4 % to 13 %). For socially vulnerable citizens as defined in Article 68 of the Housing Relations Act of the Republic of Kazakhstan, the interest rate was 7 % (EAR from 7.1 % to 9.6 %). Thus, the Nauryz program is an effective instrument for providing preferential housing loans to socially vulnerable groups, young families, and regional residents. Due to stable funding through bond issuance and government subsidies, the program maintains low interest rates, ensuring wide accessibility.

At the end of 2024, during the annual KASE award ceremony honoring member organizations and listed companies that made significant contributions to the capital market, Otbasy Bank JSC received an award in the category ESG Bond Market Leader. The Bank’s social bonds aimed at supporting the national social housing program demonstrate the institution’s sustainability focus, its successful strategic positioning, and high trust from institutional investors and partners.

In 2025, the Bank will continue the implementation of the Nauryz program. To finance the program, the Bank also plans to issue additional social bonds, open to all investors, including individuals, as a reliable and attractive financial instrument.